• 2 to 3 years’ worth of accounts. If you’re a ​limited company​, provide your lender with your full business accounts.
• Evidence of previous contracts, contract renewals and future contracts lined up.For contractors who haven’t been operating long enough to have 2 to 3 years’ worth of accounts, some lenders will accept six months’ worth of accounts, depending on what type of contract worker you are and other factors like your ​credit score​ and the size of your deposit.

Because contractors don’t earn a stable income like people who are in full-time employment, it can be more difficult for lenders to ​calculate how much they can lend you and how likely you are to meet your mortgage repayments​. However, there are multiple ways lenders assess your income, depending on how long you’ve been a contractor.

• Average Income — Lenders will usually look at your earnings over the last few years (usually 2 to 3 years) and calculate an “average income.” For example, if you earned £20,000 one year and £30,000 the next, they’ll take your average income as £25,000. Then they use this info to figure out how much you can afford each money in mortgage repayments.

However, lenders may avoid this approach if your earnings vary drastically from year to year. Instead, they might base it on the lowest year or your most recent year, which may reduce the amount you’re able to borrow.

• Day Rate — Some lenders approve mortgage applications on day one of your contract, so long as the contract is for at least six months. They’ll multiply your day rate by the number of days you work in a week or a month and use this figure to calculate your mortgage affordability.

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